Merck KGaA, Darmstadt, Germany, is making a significant move to bolster its healthcare division, announcing plans to acquire U.S.-based SpringWorks Therapeutics for approximately $3.9 billion. The definitive agreement will see Merck pay $47 per share in cash, representing a 26% premium to SpringWorks’ 20-day average stock price before news of the deal first surfaced.
This acquisition fits neatly into Merck’s long-term strategy to expand its global healthcare portfolio, particularly in the area of rare tumors and precision oncology. With this deal, Merck will not only add two groundbreaking FDA-approved therapies to its pipeline but also strengthen its commercial footprint in the United States—the largest pharmaceutical market in the world.
SpringWorks brings to the table a robust portfolio focused on rare diseases and oncology. Its leading products include OGSIVEO® (nirogacestat), the first systemic therapy approved for adults with progressing desmoid tumors, and GOMEKLI™ (mirdametinib), the first FDA-approved treatment for both adults and children with neurofibromatosis type 1-associated plexiform neurofibromas (NF1-PN). Both therapies address underserved patient populations and are expected to drive immediate and sustainable revenue growth for Merck’s healthcare business.
“This acquisition marks a major step in our strategy to position Merck as a global powerhouse in science and technology,” said Belén Garijo, Chair of the Executive Board and CEO of Merck KGaA, Darmstadt, Germany. “It enhances our rare tumor portfolio, expands our presence in the U.S., and accelerates growth opportunities for our Healthcare sector.”
Financially, the acquisition is expected to be immediately revenue accretive and to contribute to earnings per share (EPS pre) by 2027. Merck plans to finance the acquisition through a combination of cash on hand and new debt while preserving its strong investment-grade credit rating.
SpringWorks’ CEO Saqib Islam expressed optimism about the deal, emphasizing that Merck’s resources and global reach will allow SpringWorks’ innovative therapies to benefit a broader population of patients worldwide. “We believe joining Merck will enable us to accelerate our mission to improve the lives of people affected by devastating rare tumors,” Islam said.
Regulatory approvals and SpringWorks shareholder approval are still pending, but both companies’ boards have unanimously supported the transaction. Closing is expected in the second half of 2025.
Beyond just two approved therapies, SpringWorks also brings a promising pipeline of additional programs targeting solid tumors and hematological cancers. Merck’s move to integrate this pipeline reflects its commitment to diversifying its portfolio while focusing on innovation-driven growth.
The acquisition also fits neatly into Merck’s wider portfolio strategy revealed during its 2024 Capital Markets Day: pursue external innovation through in-licensing and acquisitions that deliver early value. While healthcare remains a priority, Merck maintains ambitions to expand across its life sciences and electronics sectors as well.
For investors and the healthcare community, this deal signals that Merck is serious about building a leadership position in treating rare tumors and is willing to invest heavily to secure future growth. It also promises a significant expansion of treatment options for patients with limited existing therapies.